Frequently Asked Questions

A Promissory Note is a written, legally enforceable agreement to pay interest at a specific rate and frequency and repay principal (original amount invested) on a specific date.

Zero. ECPAG does not charge management or servicing fees of any kind. It earns a profit from the loans it originates and investment opportunities it underwrites.

The Factor Rate is the fixed percentage that we charge the borrowers on the front-end when the loan is originated. It is a simple interest rate paid at the maturity date of the loan. It is also the rate used to pay interest to investors who purchase the SMA Notes.

The ROI is the total interest paid to an investor on an SMA Contract. If the Factor Rate on an SMA Note is 1.25 then the total interest paid on that contract to an investor who purchased the note is 25% which is also the ROI or Return on Investment.

The loan terms to the borrowers are short-term. Less than 1 year. We use a fixed rate based on days (90, 180, 270) and Factor Rate utilizes simple interest over a short period of time as opposed to Interest Rates which are typically calculated in annual terms using APR (Annualized Percentage Rate) and are not suitable for short-term financing products of less than 12 months.

You need to be an accredited investor as defined by the SEC under Rule 501.

When you're ready to move forward, schedule a call with one of our representatives who will walk you through the process to get started. You may also go to our website and click on the “Participant Suitability” tab and complete the required forms needed to view the Confidential Private Placement Memorandum.

Your principal is automatically returned to your funding account upon the maturity of your Note. You have the option to reinvest your principal if additional opportunities are available at that time.

ECPAG provides Participants with IRS Form 1099-INT each January.

Deciding what to do with your money is hard. The world of finance, with all its insider language, doesn’t make it any easier. Contact us for more information and a no-obligation conversation.